Protecting Clients from Debt Relief Scams in New Jersey
Debt consolidation, debt management, debt counseling and credit counseling companies claim they can help you regain your financial footing by negotiating on your behalf with lenders, creditors and credit card companies. Typically a debt relief company will claim that they can negotiate a reduced interest rate on credit cards, remove late fees and penalties on your account and then restructure what you owe into a single affordable monthly payment.
These companies usually charge a hefty, up-front "negotiation fee," the cost of which is supposedly outweighed by the long-run savings you will receive. Disreputable debt relief companies, those looking to scam and rip off vulnerable customers, may never even attempt negotiations. Some of these businesses buy information from credit card companies, learning ahead of time the amount of money for which the debt could be settled for; they use that information to convince customers about the value of their services after "negotiations" have taken place.
Devoted to Consumer Protection
Tomes & Hanratty, P.C. is devoted to consumer protection and helping prevent these deceptive practices from affecting you. Our attorneys are familiar with tactics and scams used by debt management and debt relief companies that refuse to be bound by the restrictions set forth in New Jersey's Debt Adjuster's Statutes. Attorney Frances Tomes is recognized by the Supreme Court of New Jersey as a Certified Trial Attorney. She has handled countless consumer protection-related cases over the years, and has brought both individual and class actions on behalf of defrauded clients.
If you believe you have been the victim of a debt consolidation scam, contact us today. You can e-mail us at the law office of Tomes & Hanratty, P.C. today.
Some warning signs that a debt relief company could be operating a scam include high up-front fees, high monthly fees, promises that their services will improve your credit rating and if the company is either "for-profit" or not "non-profit."
In many cases, most of your payments will actually go to pay the company's fees rather than to pay off your debt. Most of these companies cannot prevent collection actions, lawsuits, detrimental marks on your credit report, wage garnishments or levies/liens on your property. They simply cannot offer you the protections that filing Chapter 7 or Chapter 13 bankruptcy can.
Contact Us for Aggressive Representation
If a company has contacted you promising to provide debt consolidation consumer protection, be wary. Scams have crept up across the country, taking advantage of hard working people just like you.
Contact us today to schedule a free initial consultation with aggressive and dedicated attorneys at Tomes & Hanratty, P.C.. Call us at 732.257.0601, toll-free at 1.866.NJLAWFIRM or send us an e-mail to learn more about our legal services and how we can help you.
